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Ecommerce

 Report  
Australia
2017

Report  partners Executed  by

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Thank  you…
Thank you for downloading this report. We hope this report will help you take the next step in selling online in Australia.

The Ecommerce Foundation is an independent non-­‐profit organization, initiated by worldwide national ecommerce
associations, as well as online and omnichannel selling companies from industries such as retail, travel & finance. Our mission
is to foster global digital trade, as peace is the natural effect of trade. By facilitating digital commerce we hope to make the
world a slightly better place.

We especially would like to thank our Report Partners; namely Ingenico, Asendia, Ecommerce Europe, Manhattan Associates
and Salesforce. Without their support, this report would not have been created. Moreover, a great amount of gratitude is
extended to the Ecommerce Association of Australia, NORA, for its support in data collection and promotion.

If you like our reports, please visit our report page on www.EcommerceWiki.org. On this page, you
will find a large collection of Ecommerce Country Reports for free.

Your feedback is also very much appreciated. Please contact us


at info@ecommercefoundation.org.
Jorij  Abraham
MD  Ecommerce  Foundation

www.ecommercefoundation.org   1
A  Thank  You  to  our  Report  Partners
Ingenico is the most knowledgeable global Payment Service Provider in the world, processing international ecommerce payments for more than 600 of the
world’s most recognized ecommerce brands in the digital goods and services, travel, retail and video gaming industries, among many others. Ingenico’s
business intelligence tools, Managed Fraud Services and more than 400 payments experts help our clients elevate their payment strategies to become a
strategic asset to their companies.

Asendia is one of the world’s top three international mail, shipping and distribution organizations, delivering your packages, parcels and documents to
more than 200 destinations across the globe. Formed as a partnership between La Poste and Swiss Post in 2012, the Asendia business employs more than
1,000 people worldwide, has offices in 15 countries and a global network of delivery partners to get your package where it needs to be, when it needs to
get there.

Manhattan Associates is a technology leader in supply chain and omni-­‐channel commerce. We unite information across the enterprise, converging front-­‐
end sales with back-­‐end supply chain execution. Our software, platform technology and unmatched experience help drive both top-­‐line growth and
bottom-­‐line profitability for our customers. Manhattan Associates designs, builds and delivers leading edge cloud and on-­‐premises solutions so that across
the store, through your network or from your fulfilment centre, you are ready to reap the rewards of the omni-­‐channel marketplace.

Salesforce  Commerce  Cloud  was  founded  as  Demandware in  2004  and  acquired  by  Salesforce  in  July  2016.  A  cloud-­‐based  ecommerce  pioneer,  our  vision  
is  to  enable  retailers  and  brands  to  break  free  of  the  shackles  of  traditional,  legacy  platforms  and  truly  focus  on  what  they do best  – deliver  great  
products  and  a  great  brand  experience  to  its  customers.  Today,  Salesforce  Commerce  Cloud’s  industry-­‐leading  cloud  platform  is  the  digital  backbone  for  
hundreds  of  retail  brands,  and  thousands  of  commerce  web  sites  around  the  world.

Ecommerce  Europe  is  the  association  representing  25,000+  companies  selling  goods  and/or  services  online  to  consumers  in  Europe.  Founded  by  leading  
national  e-­‐commerce  associations,  Ecommerce  Europe  is  the  voice  of  the  e-­‐commerce  sector  in  Europe.  Its  mission  is  to  stimulate  cross-­‐border  e-­‐
commerce  through  lobbying  for  better  or  desired  policy,  by  offering  a  European  platform  bringing  the  European  e-­‐commerce  sector  and  other  stakeholders  
together,  and  by  providing  in-­‐depth  research  data  about  European  markets.

www.ecommercefoundation.org   2
Table  of  Contents

4 10 21

31

www.ecommercefoundation.org   3
Introduction  to  Australia

www.ecommercefoundation.org   4
Demographic  Indicators
Area:  7,741,220  km2 AGE  AND  GENDER1
Capital:  Canberra Population  by  age  and  gender,  2017  
Currency:  Australian  dollar  (AUD)
41.4%
Female
Male

20.3%

17.8%
16.2%
Population:    24,641,662   12.8% 11.9%
Institution:  Federal  parliamentary  democracy
8.7%
8.7%
Internet  users:  92% 6.2% 21.1%
URL  country  code:  .au
6.0%
Official  language:  English 9.1%
Widely  spoken  foreign  languages:  English 6.6% 5.9% 7.5%

0-­‐14 15-­‐24 25-­‐54 55-­‐64 65+


1Age  and  Gender.  Source:  CIA  World  Factbook.  Ecommerce  Foundation,  2017.

www.ecommercefoundation.org   5
E-­‐GDP  forecasted  to  rise  1.83%  in  Australian  dollars  in  2017
TOTAL  GROSS  DOMESTIC  PRODUCT1 ECOMMERCE  SHARE  OF  GDP2
GDP  at  market  prices,  Australian  dollars,  2012  – 2017(f) Ecommerce  turnover  share  of  GDP,  Australian  dollars,  2012  – 2017(f)  

Year GDP  (in  trillions  of  LCU) GDP  per  capita


1.83%
2017(f) $1,780 $72,294

1.28%
2016   $1,692 $69,702 1.17%
1.02%
2015 $1,633 $68,247 0.85% Full  version  available  at
0.94%
www.ecommercefoundation.org/reports
2014 $1,605 $67,972

2013 $1,558 $66,945

2012 $1,507 $65,752 2012 2013 2014 2015 2016 2017(f)

Total  Ecommerce Turnover  /  GFull  


DP  v    ersion  
= Ecommerceavailable   at of  GDP,  2017(f)3:  
share   1.83%
www.ecommercefoundation.org/reports
1Total  Gross  Domestic  Product.  Source:  Ecommerce  Foundation,  2017.  |  2Ecommerce  share  of  GDP.  Source:  Ecommerce  Foundation,  2017.  |3Ecommerce  Share  of  GDP.  Source:  Ecommerce  Foundation,  2017.  

www.ecommercefoundation.org   6
E-­‐GDP  forecasted  to  rise  1.90%  in  US  dollars  in  2017
TOTAL  GROSS  DOMESTIC  PRODUCT1 ECOMMERCE  SHARE  OF  GDP2
GDP  at  market  prices,  USD,  2012  – 2017(f) Ecommerce  turnover  share  of  GDP,  USD,  2012  – 2017(f)  

Year GDP  (in  trillions  of  USD) GDP  per  capita 1.90%

2017(f) $1,360 $55,215

2016   $1,259 $51,850 1.24%


1.13%

2015 $1,230 $51,364 0.85% Full  0.93%


0.87% version  available  at
www.ecommercefoundation.org/reports
2014 $1,449 $61,358

2013 $1,510 $64,831

2012 $1,561 $68,106 2012 2013 2014 2015 2016 2017(f)

Total  Ecommerce Turnover  /  GFull  


DP  v    ersion  
= Ecommerceavailable   at of  GDP,  2017(f)3:  
share   1.90%
www.ecommercefoundation.org/reports
1Total  Gross  Domestic  Product.  Source:  Ecommerce  Foundation,  2017.  |  2Ecommerce  share  of  GDP.  Source:  Ecommerce  Foundation,  2017.  |3Ecommerce  Share  of  GDP.  Source:  Ecommerce  Foundation,  2017.  

www.ecommercefoundation.org   7
Economic  Indicators
UNEMPLOYMENT  RATE1 INFLATION  RATE2
Percentage  of  the  total  labor  force,  2012-­‐2016 Annual  change  on  Consumer  Price  Index  (CPI),  2012-­‐2016

2.5% 2.5%
6.1% 6.1%
5.7% 5.7% 1.8% 1.5% 1.3%
5.2%

2012 2013 2014 2015 2016 2012 2013 2014 2015 2016

CONSUMER  CONFIDENCE  INDEX  (CCI)3


CCI  on  a  monthly  basis,  2016

99.93 99.94 99.96 99.94


99.91
99.87
99.84
99.78 99.77
99.72 99.71 99.70

Jan-­‐16 Feb-­‐16 Mar-­‐16 Apr-­‐16 May-­‐16 June-­‐16 July-­‐16 Aug-­‐16 Sep-­‐16 Oct-­‐16 Nov-­‐16 Dec-­‐16

1Unemployment  Rate.  Source:  OECD,  2016.  |  2Inflation  Rate.  Source:  OECD,  2016.  |  3CCI.  Source:  OECD,  2016.

www.ecommercefoundation.org   8
Australia  ranks  2nd in  E-­‐Government  Development  Index

Logistical Performance Index1 Ease of Doing Business Index2 E-­‐Government Development Index3
The LPI overall score reflects perceptions A high ease of doing business ranking The UN’s E-­‐Government Index provides a
of a country's logistics based on, among means the regulatory environment is comparative assessment of the e-­‐
other things, efficiency of customs more favorable for the starting and government development of UN Member
clearance process, quality of trade-­‐ and operation of a local firm. The rankings are States. Important factors contributing to a
transport-­‐related infrastructure and ease determined by sorting the aggregate high level of e-­‐government development
quality of logistics services. distance to frontier scores on 10 equal are concurrent past and present
topics. investments in telecommunication, human
capital and provision of online services.

19th 15th 2nd

Logistics  Performance   Ease  of  


E-­‐government  Index
Index Doing  Business  Index

1Logistcal  Performance  Index.  Source:  Worldbank,  2016.  |  2Ease  of  Doing  Business  Index.  Source:  Worldbank,  2016.  |  3E-­‐government  Development  Index.  Source:  UN,  2016.  

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Ecommerce  Facts  &  Figures

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80%  of  the  online  population  shopped  online  in  2016

2013 2014 2015 2016 2017(f)


Total Population1 23,130,900 23,490,736 23,795,663 24,309,330 24,641,622
Online  Population2 19,302,736 19,732,218 20,121,613 21,450,553 22,779,493
Number of  e-­‐shoppers3 14,901,712 15,509,523 15,976,561 17,160,442 18,337,492
1Total  Population.  Source:  Ecommerce Foundation,  2017.|  2Online  Population.  Source:  Ecommerce Foundation.  World  Bank,  2017.  |3Number  of  e-­‐shoppers.  Source:  Statista;  eMarketer,  2014.

www.ecommercefoundation.org   11
Ecommerce  turnover  is  growing  at  an  unprecedented  rate  
B2C  ECOMMERCE  TURNOVER1 TURNOVER  GROWTH  RATE2
Total  online  sales  of  goods  and  services,  in  billions  of  Australian  dollars,  2013-­‐2017(f) Percentage  change  in  B2C  ecommerce  turnover,  Australian  dollars,  2013-­‐2017(f)

$32.6 33.5%

$21.7
$19.1
$16.4
$14.7 Full  version  available  at 14.1%
www.ecommercefoundation.org/reports
12.9%
11.8%
10.4%

2013 2014 2015 2016 2017  (f) 2013 2014 2015 2016 2017(f)

1B2C  Ecommerce  Turnover.  Source:  Ecommerce  Foundation,  2017.  |  2Turnover  Growth  Rate.  Source:  Ecommerce  Foundation,  2017.  

www.ecommercefoundation.org   12
Ecommerce  turnover  is  growing  at  an  unprecedented  rate  
B2C  ECOMMERCE  TURNOVER1 TURNOVER  GROWTH  RATE2
Total  online  sales  of  goods  and  services,  in  billions  of  dollars,  2013-­‐2017(f) Percentage  change  in  B2C  ecommerce  turnover,  2013-­‐2017(f)
39.8%
$25.9

$15.6
$13.1 $13.4 $13.9 Full  version  available  at
www.ecommercefoundation.org/reports 10.6%
3.7%
2.2%
-­‐1.4%
2013 2014 2015 2016 2017(f)
2013 2014 2015 2016 2017  (f)

1B2C  Ecommerce  Turnover.  Source:  Ecommerce  Foundation,  2017.  |  2Turnover  Growth  Rate.  Source:  Ecommerce  Foundation,  2017.  

www.ecommercefoundation.org   13
The  number  of  e-­‐shoppers  and  average  spending  is  increasing  YoY

E-­‐SHOPPERS  AND  SPENDING1


Number  of  e-­‐shoppers;  Average  spending  per  e-­‐shopper,  Australian  dollars,  2014-­‐2017(f)

$2,305

$1,582 $1,654
$1,472
18,3mn

Full  version  available  at17,1mn


www.ecommercefoundation.org/reports
15,9mn
15,5mn

2014 2015 2016 2017(f)

1E-­‐Shoppers  and Spending.  Source:  Ecommerce Foundation.  Statista;  eMarketer,  2017.

www.ecommercefoundation.org   14
Australia  ranks  11th overall  in  internet  inclusivity
INTERNET  INCLUSIVITY  PERFORMANCE1
Ranked  by  4  key  indicators:  Availability,  quality  and  breadth  of  available  infrastructure  required  for  access  and  levels  of  internet  usage;  Affordability,  cost  of  access  relative  to  income  
and  the  level  of  competition  in  the  internet  marketplace;  Relevance,  existence  and  extent  of  local  language  content  and  relevant content;  and  Readiness,  capacity  to  access  the  
internet,  including  skills,  cultural  acceptance,  and  supporting  policy.

88

85
84
83

81

Overall Availability Affordability Relevance Readiness

1Internet  Inclusivity  Performance.  Source:  Economist  Intelligence  Unit,  2017.

www.ecommercefoundation.org   15
Department  &  Variety  Stores  items  are  most  popular
OVERVIEW  OF  POPULAR  ONLINE  PRODUCT  CATEGORIES1
Most  popular  product  groups  purchased,  share  of  the  market,  2017

Hobbies  &  Recreational  Goods 5.2%

Specialty  food  &  liquor 6.1%

Health  &  Beauty 8.7%

Media 12.9%

Homeware  &  Appliances 14.8%

Fashion 22.2%

Department  &  Variety  Stores 30.1%

1Overview  of  Popular Online  Product  Categories.  Source:  Ecommerce Foundation;  Australia  Post;  Startrack,  2017.

www.ecommercefoundation.org   16
Facebook  is  the  most  popular  social  media  platform
POPULAR  SOCIAL  MEDIA  PLATFORMS1
Share  of  users  on  social  media  platforms  on  desktop  and  mobile,  2017

74%

11%
4% 3% 2% 2% 2% 1%

Facebook Pinterest Twitter Instagram Tumblr Reddit YouTube Others

1Popular  Social  Media  Platforms.  Source:  Statcounter,  October  2017.  

www.ecommercefoundation.org   17
Internet  Browsers:  Chrome  and  Safari  are  leading
INTERNET  BROWSERS:  DESKTOP,  20161 INTERNET  BROWSERS:  MOBILE,  20162
Internet  Browsers  used  on  Desktop  Devices,  March  2016 Internet  Browsers  used  on  Mobile  Devices,  March  2016

4% 5% 1%
11%
9%
1% 2%
Chrome Safari
12%
Internet  Explorer Chrome
54% 56%
Firefox 27%
Samsung  Internet
18% Safari Android
Edge IEMobile
Other INTERNET  BROWSERS:  MOBILE,  20172 Other
INTERNET  BROWSERS:  DESKTOP,  20171
Internet  Browsers  used  on  Desktop  Devices,  March  2017 Internet  Browsers  used  on  Mobile  Devices,  March  2017
6% 2% 2% 2%
11% 8%
2%

11%
58% 55%
31%
12%

1Internet  Browsers:  Desktop.  Source:  Statcounter,  2016-­‐2017.  |  2Internet  Browsers:  Mobile.  Source:  Statcounter,  2016-­‐2017.

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Operating  Systems:  Windows  and  iOS  are  leading
OPERATING  SYSTEMS:  DESKTOP,  20161 OPERATING  SYSTEMS:  MOBILE,  20162
Operating  Systems  used  on  Desktop  Devices,  March  2016 Operating  Systems  used  on  Mobile  Devices,  March  2016

2% 2%

22% 2%
39%

Windows 59%
74% OS  X iOS
Unknown Android
Other Other
OPERATING  SYSTEMS:  DESKTOP,  20171 OPERATING  SYSTEMS:  MOBILE,  20172
Operating  Systems  used  on  Desktop  Devices,  March  2017 Operating  Systems  used  on  Mobile  Devices,  March  2017
1%
2%
26% 1%

40%

58%
72%

1Operating  Systems  Desktop.  Source:  Statcounter,  2016-­‐2017.  |  2Operating  Systems  Mobile.  Source:  Statcounter,  2016-­‐2017.

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VAT  Information
VAT  OVERVIEW1
2017

VAT  overview Australia Standard  VAT  rates Applies  to,  among  other things:  

Threshold  for   $75,000  (AUD)  both  current  and  


10% • Goods  and  Services  Tax  (GST)
registration projected  turnover
Standard  VAT  rate 10%
Registered  companies  are  periodically  required  to  submit  GST  
returns,  known  as  Business  Activity  Statements  (‘BAS’).  The  turnover
and  time  of  registration  determines  the  frequency.

The  BAS  lists includes  all  the  business  transactions  related  to  
supplied  of  relevant  goods  or  services.

There  is  no  provision  in  Australia  for  VAT  reclaims,  along  the  lines  of  
the  European  Union’s  8th &  13th VAT  Directives.

Instead,  non-­‐resident  companies  must  register  for  GST  as  outlined  


above.

1Vat  Overview.  Source:  Vatlive,  2017.

www.ecommercefoundation.org   20
Ecommerce  Environment

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Most  use  search  engines  on  smartphone  and  computer
CONSUMER  BEHAVIOR:  WEEKLY  MOBILE  DEVICE  ACTIVITIES1
The  weekly  online  activities  of  individuals  on  smartphones  &  computers,  2017
72%
67%
61%
52%
46% 48%

38% 40%

Full  20%
version  available  at 17%
20%
15%
www.ecommercefoundation.org/reports

Use  search  engines Visit  social  networks Play  games Watch  online  videos Purchase   Look  for  product  
products/services information

How  often  do  you  do  the  following  through  your  web  browser/apps  on  a  smartphone?
How  often  do  you  do  the  following  through  your  web  browser/apps  on  a    computer?
1Consumer  behavior:  Weekly  Smartphone    and  Computer  Online  Activities.  Source:  Consumer  Barometer;  The  Connected  Consumer  Survey,  2017.

www.ecommercefoundation.org   22
Social  media  research  increasingly  results  in  more  online  purchases

CONSUMER  BEHAVIOR:  SOCIAL  MEDIA  PRODUCT/SERVICE  RESEARCH1


The  proportion  of  research  on  social  media  leading  to  online  purchases,  2016

41.9%

30.9%
28.8% 29.0% 29.6%

2012 2013 2014 2015 2016

1Consumer  behavior:  Social  Media  Product/Service  Research.  Source:  Statista;  Sensis;  Di  Marzio Research;  TKW  Research  Group,  2016.  

www.ecommercefoundation.org   23
Majority  of  consumers  use  laptops  to  shop  online
CONSUMER  BEHAVIOR:  MOBILE  DEVICE  USAGE1
Devices  used  to  shop  online,  2017

Tablet  PC  (app) 5%

Tablet  PC  (browser) 13%

Mobile  phone  (app) 16%

Mobile  phone  (browser) 23%

Desktop  PC 41%

Laptop 53%

1Consumer  Behavior:  Mobile  Device  Usage.  Source:  GfK;  Australian  Online  Shopping  Behaviour,  2017.

www.ecommercefoundation.org   24
45%  of  mobile  shoppers  purchase  monthly  
CONSUMER  BEHAVIOR:  MOBILE  PURCHASE  FREQUENCY1 CONSUMER  BEHAVIOR:  ADVERTISEMENT  CONVERSION2
Frequency  of  mobile  purchases,  2016 Share  of  consumers  influenced  by  advertisements;  Australia,  2016
Clicked  on  the  ad  to  find  
45% out  more  information
34% 34% 34%
31% Clicked  on  the  ad  to  visit  
the  advertiser's  website
31%
Checked  out  the  product  
25% or  service  at  another  
Full  version  available  attime
17% 17% Visited  the  advertiser's  
www.ecommercefoundation.org/reports
website  another  time

Clicked  on  the  ad  to  


purchase  the  
product/service
Shared  the  ad  with  
others
Daily/Weekly Monthly A  Few  Times  A  Year

1Consumer  Behavior:  Mobile  Purchase  Frequency.  Source:  IAB,  A  Global  Perspective  of  Mobile  Commerce,  2016.  |  2Consumer  Behavior:  Advertisement  Conversion.  Source:  IAB,  A  Global  Perspective  of  Mobile  Commerce,  2016.

www.ecommercefoundation.org   25
Customers  increasingly  prefer  mobile  apps  for  online  shopping

46%  of  online  consumers  said   67%  use  the  app  for  their  
they  use  retail  and  shopping   shopping  process  from  
apps  for  convenience.   discovering  to  purchase.

Purchases  via  
mobile  apps

61%  said  an  app  is  more   85%  of  online  consumers  make  a  
enjoyable  than  buying  via  an   purchase  on  retail  or  shopping  
mobile  website.   app  at  least  once  a  month  

1Mobile  Purchases  on  Apps.  Source:  GfK;  Australian  Online  Shopping  Behaviour,  2017.

www.ecommercefoundation.org   26
Most  purchase  large  home  appliances  &  TV/video  players  in-­‐store
CONSUMER  BEHAVIOR:  BUYING  TECHNOLOGICAL  PRODUCTS1
Purchasing  technological  product  category  online  or  in  a  physical  store,  2017

Small  household  appliances 53%


46%

Small  kitchen  appliances 55%


44%

Large  home  appliances 61%


38%

Tech  Accessories 44%


55%

Wearables 42%
58%

Audio  Devices 47%


51%

Computing 47%
51%

TV/Video  players 61%


38%

Smartphone 53%
47%
Physical  Store Online
1Consumer  Behavior:  Buying  Technological  Products.  Source:  GfK;  Australian  Online  Shopping  Behaviour,  2017.

www.ecommercefoundation.org   27
Saving  money  is  the  top  reason  for  consumers  purchasing  online
CONSUMER  OPINION:  REASONS  TO  PURCHASE  ONLINE1 CONSUMER  OPINION:  BARRIERS  TO  PURCHASING  ONLINE2
Top  reasons  for  consumers  to  purchase  online,  share  of  consumers,  2017 Barriers  for  consumers  to  purchase  online,  2017

Buying  online  is  too  complicated 4%


Better  delivery  options 19%

Difficult  to  return  items 34%


Shopping  is  faster 29%

Prefer  to  see  the  product  in-­‐person 49%

Better  selection 32%


Cost  of  delivery 50%

Shopping  is  easier 35%


Reliability  of  delivery 23%

Save  money 56% Personal  details  security 29%

1Consumer  Opinion:  Reasons  to  Purchase  Online.  Source:  GfK;  Australian  Online  Shopping  Behaviour,  2017.  |  2Consumer  Opinion:  Barriers  to  Purchasing  Online.  Source:  GfK;  Australian  Online  Shopping  Behaviour,  2017.  

www.ecommercefoundation.org   28
Free  delivery  is  most  important  factor  for  e-­‐shoppers
CONSUMER  OPINION:  FACTORS  INFLUENCING  ONLINE  PURCHASING1
The  importance  of  each  factor  in  changing  online  purchase  decisions,  2017

Personalized  offers 63%

Mobile  payments  ability 45%

Discount  on  bulk  purchases 79%

Professional  reviews 67%

Holiday/seasonal  discounts 78%

Better  loyalty  programs 83%

More  user  reviews 67%

More  daily/weekly  deals 81%

Same  day  delivery 77%

Free  delivery 92%

1 Consumer  Opinion:  Factors  Influencing  Online  Purchasing.  Source:  GfK;  Australian  Online  Shopping  Behaviour,  2017.  

www.ecommercefoundation.org   29
Majority  prefer  cash  as  payment  method
CONSUMER  BEHAVIOR:  SHOPPING1 CONSUMER  BEHAVIOR:  PAYMENT  METHODS2
Share  of  spending  on  cross-­‐border  and  domestic  products  by  e-­‐shoppers,  2017 The  frequency  of  payment  methods  used,  share  of  e-­‐shoppers,  2017

2%
18%
21%
32%

14%

Full  version  available  at


2%
www.ecommercefoundation.org/reports
14%
18%
79%
Cash Credit  card
Debit  card Pay  with  mobile
Spend  on  international  products
Credit  card  (contactless) Debit  card  (contactless)
Spend  on  domestic  products Other,  unsure,  don't  know

1Consumer  Behavior:  Shopping.  Source:  Ecommerce Foundation;  Australia  Post;  Startrack,  2017.  |  2Consumer  Behavior:  Payment  Methods.  3Top  international product  category.  Source:  GfK;  Australian  Online  Shopping  Behaviour,  2017.  

www.ecommercefoundation.org   30
About  the  Report

www.ecommercefoundation.org   31
About  the  National  Ecommerce  Reports  and  where  to  find  them…
The National Ecommerce Reports are published by the Overview reports 2017
Ecommerce Foundation. They provide overviews of the mature • European overview report
and emerging markets in the field of ecommerce. • Global overview report

In total, the Ecommerce Foundation publishes multiple country 2017 Country Reports
reports and two overview reports per year, covering the most • Netherlands Switzerland
important ecommerce markets worldwide. • Belgium Turkey
• United Kingdom Finland
To have a tailor-­‐made ecommerce report made, • France Czech Republic
completely based on your wishes and requirements, please • Ireland Romania
contact us via info@ecommercefoundation.org. • Germany Australia
• Russia Japan
A  light  version  of  each  report  can  be  downloaded for  free  via:   • Spain India
www.ecommercewiki.org/Ecommerce_Foundation. • Italy Brazil
• Portugal United States
The  full  reports  can  be  online  purchased  via: • Denmark Canada
http://www.ecommercefoundation.org/buy-­‐reports. • Sweden Poland
• Norway

www.ecommercefoundation.org   32
Definitions  related  to  the  Internet,  ecommerce  and  Online  Retailing
• Broadband access: the availability of broadband is measured by the percentage of • E-­‐households: number of households that use the Internet for personal gain.
households that are connectable to an exchange that has been converted to
support DSL technology, to a cable network upgraded for Internet traffic, or to • E-­‐household expenditure: expenditure per household that bought goods or
other broadband technologies. It includes fixed and mobile connections (source: services in the past year.
Eurostat)
• Global Online Measurement Standard for B2C ecommerce (GOMSEC): aims to
• Cross-­‐border ecommerce: percentage of ecommerce purchased at foreign sites provide guidelines to measure and monitor B2C ecommerce in order to enable all
European countries to provide data with respect to the penetration of B2C
• Ease of Doing Business Index: The Ease of Doing Business Index is developed by ecommerce in a standardized way.
the World Bank, and averages the country's percentile rankings on nine topics. It is
made up of a variety of indicators, giving equal weight to each topic. The rankings • E-­‐Government Index: The UN’s E-­‐Government Index provides a comparative
for all economies are benchmarked to June 2010. The Index covers 185 countries. assessment of the e-­‐government development of UN Member States. One of the
primary factors contributing to a high level of e-­‐government development is
• ecommerce (or electronic commerce), a subset of e-­‐business: any B2C contract on concurrent past and present investment in telecommunication, human capital and
the sale of products or services fully or partly concluded by a technique for provision of online services.
distance communication.
• Gross Merchandise Volume: the total sales facilitated by a third party, such as a
• ecommerce GDP: total amount of goods and services online divided by the total market place.
Gross Domestic Product (GDP).
• E-­‐services or electronic services: “Deeds, efforts or performances whose delivery is
• Economic Freedom Index: the Index of Economic Freedom is an annual guide mediated by information technology. Such e-­‐service includes the service element
published by The Wall Street Journal and The Heritage Foundation, Washington's of e-­‐retailing, customer support, and service delivery.” This definition reflects three
No. 1 think tank. For over a decade, the Wall Street Journal and The Heritage main components: service providers, service receivers and the channels of service
Foundation have tracked the march of economic freedom around the world with delivery (i.e. technology). (Jennifer Rowley, Professor Information and
the influential Index of Economic Freedom. There are 5 categories, ranking from Communications, Manchester Metropolitan University, UK)
Free (with a score between 80 and 100) to Repressed (between 40 and 49.9).
• Inactive online population: users that have access to the Internet but have not
(yet) purchased goods or services online in the past year.

www.ecommercefoundation.org   33
Definitions  related  to  the  Internet,  ecommerce  and  Online  Retailing
• Market place: online platform on which companies (and consumers) sell goods • Online expenditure: spending per user who purchased goods or services online.
and/or services.
• Online Retail (or e-­‐retail, electronic retail or retailing or even e-­‐tailing): the selling
• Logistics Performance Index (LPI): The Logistics Performance Index (LPI) measures of retail goods and services on the Internet. In the limited sense of the word,
the “logistics friendliness” of 155 countries. It helps countries identify the sectors such as online leisure travel, event tickets, downloading music or software
challenges and opportunities they face in their trade logistics performance and are not included. Online-­‐only retail shops are often referred to as pure players.
what they can do to improve this. The Index is developed by the World Bank and is
based on a worldwide survey of operators, such as global freight forwarders and • Penetration levels: the percentage of a population using the Internet, mobile
express carriers. phones, smartphones or tablet devices.

• Mobile commerce (or m-­‐commerce): the ability to conduct commerce using a • Real economic growth rate: a measure of economic growth from one period to
mobile device e.g. a mobile phone, a PDA, a smartphone, a tablet or other another expressed as a percentage and adjusted for inflation. The real economic
(emerging) mobile equipment. growth rate is a measure of the rate of change that a nation's gross domestic
product (GDP) experiences from one year to another.
• Mobile subscriptions: mobile cellular telephone subscriptions are subscriptions to
a public mobile telephone service using cellular technology, which provide access • Retail sales: the selling of mainly goods from businesses to individuals from a
to the public switched telephone network. Post-­‐paid and prepaid subscriptions are traditional or so-­‐called bricks-­‐and-­‐mortar shop.
included (source: Eurostat).
• Statcounter research method: Statcounter is a web analytics service and their
• Networked Readiness Index (NRI): The NRI measures the tendency for countries to tracking code is installed on more than three million sites globally. These sites
exploit the opportunities offered by information and communications technology cover various activities and geographic locations. Every month, Statcounter records
(IT). The NRI comprises three components: the environment for IT offered by a billions of page views to these sites. For each page view, they analyze the
given country or community, the readiness of the country's key stakeholders to use browser/operating system/screen resolution used and they establish if the page
IT, and the usage of IT among these stakeholders. view is from a mobile device. They calculate their Global Stats on the basis of more
than fifteen billion page views per month, by people from all over the world onto
• Online buyer (or e-­‐shopper, e-­‐buyer): an individual who regularly bought or more than three million member sites.
ordered goods or services through the Internet.

www.ecommercefoundation.org   34
The  Global  Online  Measurement  Standard  for  B2C  Ecommerce  (GOMSEC)  standard
GOMSEC aims to provide guidelines for measuring Definition of B2C ecommerce sales Online purchases of the following items are excluded
and monitoring B2C ecommerce. As a result, all from GOMSEC:
countries worldwide are able to provide data with “Any B2C contract regarding the sale of goods • Transactions between private
respect to the penetration of B2C ecommerce in a and/or services, fully or partly concluded by a individuals/consumers (C2C), such as auctions
standardized way. All Ecommerce Foundation figures technique for distance communication.” and marketplaces, and between businesses
and estimates are based on GOMSEC, unless stated (B2B)
otherwise. Technique for distance communication: means • Online gambling and gaming
that can be used for communication regarding the • Cars and other motor vehicles
The GOMSEC reports on sales figures for the total B2C offer made by the trader and the conclusion of a • Houses and real estate
ecommerce worldwide and for each country separate contract, without the necessity of the consumer • Utilities (e.g. water, heating and electricity)
in the country profiles, based on total sales of goods and trader being in the same place at the same • Mortgages, loans, credit cards and overdrafts
and services. time. • Savings accounts, funds, stocks&shares and
bonds
These total sales of goods and services are based on Contract: a contract whereby use is made, either
the areas/sectors/classification of areas and sectors, solely or in part, of one or more techniques for B2C ecommerce therefore includes all online
as stated on the next few pages. distance communication within the framework of a transactions between businesses and consumers
system organized by the trader for the distance sale using desktop computers, laptops, tablets,
All data reported in the national currency of the of goods and/or services, up to and including the smartphones, point-­‐of-­‐sales and smart-­‐wearables,
country involved is converted into euros according to moment that the contract is concluded. for instance through online shops, physical stores
the average (annual) rate of exchange as provided (“online instore”), email, QR codes, catalogs, etc. B2C
by, preferably, the European Central Bank (ECB) or Classification of B2C ecommerce ecommerce includes Value Added Tax (VAT) or other
the national bank of the particular country. The sales tax, delivery costs and apps, but excludes
reference period that is used for this was from 1 The following classification on the next few pages returns.
January to 31 December of each report year. Growth provides an overview of areas and sectors included
rates are calculated and measured by the B2C in GOMSEC.
ecommerce sales in the national currency.

www.ecommercefoundation.org   35
Global  Online  Measurement  Standard  for  B2C  ecommerce  (GOMSEC)
Media  &  Entertainment Electronics
Music  (physical,  download  &  streaming)/Spotify  based  on  new  subscriptions Consumer  Electronics Information  Technology  (IT) Household  Electronics
Video  (DVD,  Blu-­‐ray,  downloads) Photo  equipment IT  hardware  (PCs,  laptops,       MDA:  
Games  hardware  &  games  software tablets,  etc.) air-­‐conditioning,    
Books  &  e-­‐books Audio  equipment Computer  Software dishwashers,  wash    
Apps machines  and  other  
TV/video  equipment Music  instruments white  goods
New  subscriptions  newspapers  ands  magazines  (no  single  copy  sales)
Car  electronics       USB  sticks,  DVD/CD-­‐ SDA: equipment  for
Fashion (navigation,  audio,   recordable,  ink  cartridges,     personal  care,  home
Clothing Shoes  &  Personal  lifestyle etc.) computer  accessories comfort,  kitchen
Underwear  &  Upperwear Shoes appliances
Children's  wear
Swimwear  &  Sportswear Jewelry,  Bijoux,  Watches  &  others  
fashion  accessories  (e.g. sunglasses) Sports  &  Recreation
Nightwear  &  legwear Bags,  wallets,  suitcases Sports  hardware  (e.g.  soccer  shoes,  tennis  rackets)
Bicycles  &  accessories
Articles  for  camping  and  recreation
Toys
Indoor  and outdoor toys

www.ecommercefoundation.org   36
Global  Online  Measurement  Standard  for  B2C  ecommerce  (GOMSEC)
Home  &  Garden Food/Nearfood/Health
Furniture  and  kitchens Food/Nearfood Health  &  Beauty
Floor  and  window  coverings  (e.g. curtains  and  blinds) Food  &  Beverages Personal  care  &  Hygiene  
Home  textiles Fresh  produce Baby  care
Cookware  (sets),  kettles  and  oven  equipment Packaged  consumer  goods Perfume
Table  and  kitchen  articles Detergents/household  cleaning OTC
Articles  for  cleaning,  wash  and  store Animal  feed
Decoration   Tobacco
Lamps  and  fixtures
DIY-­‐articles
Garden  articles Other: Products
Flowers  and  plants  (in  home) Cars components
Glasses  and  contact  lenses
Telecom Stationery
Smartphones,  mobile  phones  &  mobile  devices Pictures  and  photo  albums
Telefax  and  answering  machines Pet  supplies
Erotica
Headsets  &  Accessories  (mobile)  phones
Prepaid  cards  and  tariffs  of  new  phone  subscriptions

www.ecommercefoundation.org   37
Global  Online  Measurement  Standard  for  B2C  ecommerce  (GOMSEC)
Insurance Travel
New  indemnity,  Life  and    Health  Insurances Package  Travel Flight  Tickets  &  Accommodations
Package  travel Flight  Tickets
Liability  insurance ANW-­‐gap  insurance   Health  Insurance  –
Car  insurance (insurance  for receiving  a   Base Private transport  if  booked  through  a   Hotel  stays
Fire  and  theft  insurance payment  in  addition  to  a     Health  insurance  – tour  operator Apartment/bungalow/camping  site
survivor's  allowance)   additional -­‐>  all  of  the  above  not  booked  in  
Bike/caravan/motorbike/       Annuity  insurance Disability  insurance  – combination  with  other  travel-­‐parts
Scooter  insurance Pension entrepreneurs Event  Tickets
Accident  insurance Life  insurance Disability  insurance  – Tickets  for  concerts  and  festivals
Boat  insurance Funeral  insurance private Tickets  for  (movie)  theaters
Legal  assistance  insurance Endowment  insurance   Mortgage-­‐related   Tickets  for  zoos  and  amusement  parks
Home  insurance based  on  savings disability  insurance Tickets  for  museums
Travel  insurance   Endowment  insurance   Mixed  insurance   Tickets  for  sports  games
(continuous/annual  +  short   based  on  investments (=endowment  
term)   insurance  +  life   Other: Services
Insurance  package insurance) New  subscriptions to  dating  service
Other  services

www.ecommercefoundation.org   38
Sources  used  in  the  report
The report could only be realized by consulting a great number of valuable Publications
• Australia  Post
sources. These were available in various countries and regions in Europe and • Australian  Online  Behaviour
around the globe. The wide variety of sources include public domain • CIA  World  Factbook
• Consumer  Barometer
publications, blogs, websites, industry and financial specialist publications, • Connected  Consumer  Survey
• Di  Marzio Research
regional and local news, annual reports, and press releases. • Economist  Intelligence  Unit
• eMarketer
• Eurostat
Sometimes the information sources are contradictory and sometimes different • GfK
• IAB
figures and data were given by varying sources within the same country, for • OECD
example due to different definitions. In our reports we have mentioned the • Sensis
• Startrack
different sources, definitions and outcomes of such reports, studies and • Statista
interpretations. • Statcounter
• TKW  Research  Group
• United  Nations
• Vatlive
The report is based on information that we consider reliable, but we cannot • World  Bank
vouch for it being completely accurate or complete, nor should it be relied upon
as such. Opinions expressed are our current opinions as of the date of this
report.

www.ecommercefoundation.org   39
About  the  Ecommerce  Foundation
Our History
The Ecommerce Foundation is an independent non-­‐profit organization, initiated by worldwide national ecommerce
associations and online and omnichannel selling companies from industries such as retail, travel & finance.

Why an Ecommerce Foundation?


Our mission is to foster global digital trade as peace is the natural effect of trade. By facilitating digital commerce we hope to
make the world a slightly better place.

How does the Foundation help?


We facilitate the development of practical knowledge, insights and services for which individual institutions, retail and
ecommerce associations and B2C selling companies do not have the (financial) resources and/or capabilities. By combining
collective goals and efforts, the Ecommerce Foundation is able to realize projects which could not have been realized on an
individual basis.

What does the Ecommerce Foundation do?


The Foundation is developing and offering several services such as the Ecommerce Benchmark, the EcommerceWiki and the
National Ecommerce Reports. At the moment we are also researching if a Global Ecommerce Trustmark can be set-­‐up to
increase worldwide consumer trust and as a result global trade.​

www.ecommercefoundation.org   40
The  Ecommerce  Foundation  offers  several  services  to  associations  &  retailers
40+  National   Every  year  a  C-­‐level   The  Global  
Ecommerce  Reports   study  delegation   Ecommerce  Summit  &  
supporting  retailers   travels  to  an  inspiring   awards offer  retailers  
going  across  borders location.  Previous  trips   insights  into  best  
include  Silicon  Valley,   practices  from  across  
Seattle  ,  NY  and  China the  world

The  Ecommerce   The  EcommerceWiki  is   EcommerceReports


Benchmark  allows   the  online  handbook   curates  all  ecommerce  
online  retailers  to   for  ecommerce   related  research  across  
compare  &  improve   managers  with   the  globe  by  adding  an  
their  ecommerce   templates,  process   editorial  board  and  
activities descriptions,  and  more peer  review

Lectures  &   Custom  research  is  


presentations  are   done  for  a  diverse  set  
offered  to  help   of  topics  both  co-­‐
members  look  into  the   branded  as  well  white  
future  of  shopping labeled

www.ecommercefoundation.org   41
About  the  Authors
Jorij  Abraham   Sara  Lone Johnson  Chen
Managing  Director Research  Coordinator Research  and  Marketing  
Intern
Jorij  Abraham  has  been   Sara  Lone  recently  moved  to  
active  in  the  international   the  Netherlands  after   Johnson  is  an  
ecommerce  community   graduating  with  her  Masters   International  Business  and  
since  1997.  He  was  an   degree  in  Public  Policy  from   Management  student  at  
Ecommerce  Manager  at   the  University  of  California,   The  Hague  University  of  
Bijenkorf,  TUI  and  Sanoma   Irvine.   Applied  Sciences.  The  
Media  and  Director  of   internet  in  statistical  
Consulting  at  Unic. She  joins  the  Ecommerce   analysis  has  moved  him  to  
Foundation  with  a   the  research  department  
From  2013  to  2017  he  has   background  in  economic   at  the  Ecommerce  
been  Director  of  Research   research  and  policy  analysis,   Foundation.  
&  Advice  at   having  previously  worked  as  a  
Thusiwinkel.org  and   researcher  in  a  California  firm   Johnson  works  on  national  
Ecommerce  Europe  (the   and  interning  as  a  policy   reports,  the  Global  report  
Dutch  and  European   analyst  for  a  non-­‐profit   of  2017,  and  additional  
Ecommerce  Association). organization.   relevent  projects.

www.ecommercefoundation.org   42
Address,  Disclaimer  &  Copyright
Address: Ecommerce Foundation
Rijksstraatweg 29
1115 AH Duivendrecht (Amsterdam)
The Netherlands
Website: www.ecommercefoundation.org
Contact: info@ecommercefoundation.org
Twitter: @Ecomfound

Disclaimer
The National Ecommerce Reports are publications by Ecommerce Foundation, which also owns the copyright for these reports.
Although the utmost care has been taken in the construction of these reports, there is always the possibility that some
information is inaccurate. No liability is accepted by Ecommerce Foundation for direct or indirect damage arising pursuant to
the use of the report.

Copyright ©
It is not allowed to use information published in this report without the Ecommerce Foundation’s prior consent. Any violation
in this regard will be charged a legal fine of € 25,000 (twenty-­‐five thousand euros), as well as a further penalty of € 2,500 (two
thousand, five hundred euros) for every day that this non-­‐compliance continues. However, it is allowed to use small parts of
the information published in our reports provided that proper sourcing is used (e.g. “source: www.EcommerceFoundation.org)

www.ecommercefoundation.org   43
www.ecommercefoundation.org   44

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